1. Report Industry Investment Rating - No information provided in the given content 2. Core View of the Report - The tense situation in the Middle East has caused high - level fluctuations in oil prices, which in turn drives up the overall prices of chemical products [1] 3. Summary by Relevant Catalogs 3.1 Basic Chemical Weekly Data Briefing 3.1.1 Related Company Performance Tracking - The Basic Chemical Index had a 0.6% increase in the past week, 5.4% in the past month, 27.1% in the past three months, 49.5% in the past year, and 19.2% since the beginning of 2026 [8] - Among related companies, the stock prices of Baofeng Energy had significant increases, with a 21.2% increase in the past week, 44.6% in the past month, 95.6% in the past three months, 112.9% in the past year, and 76.8% since the beginning of 2026; while Wanhua Chemical's stock price decreased by 9.1% in the past week [8] 3.1.2 Related Company Profit Tracking - The total market value, net profit attributable to the parent company, PE, and PB of companies such as Wanhua Chemical, Baofeng Energy, Satellite Chemical, Hualu Hengsheng, New Hope Liuhe, and Adisseo were presented, with some data being the forecasts of Soochow Securities Research Institute [8] 3.1.3 Industry Chain Data - **Polyurethane Industry Chain**: The weekly average prices of pure MDI, polymer MDI, and TDI were 20457 yuan/ton, 16500 yuan/ton, and 17996 yuan/ton respectively, with month - on - month increases of 2114 yuan/ton, 1893 yuan/ton, and 2283 yuan/ton respectively; the corresponding gross profits were 5175 yuan/ton, 2218 yuan/ton, and 4510 yuan/ton, with month - on - month changes of +576 yuan/ton, +355 yuan/ton, and - 33 yuan/ton respectively [2][8] - **Oil - Gas - Olefin Industry Chain**: The average prices of ethane, propane, steam coal, and naphtha were 1250 yuan/ton, 6376 yuan/ton, 520 yuan/ton, and 6435 yuan/ton respectively, with month - on - month increases of 44 yuan/ton, 887 yuan/ton, 0 yuan/ton, and 1211 yuan/ton respectively. The average price of polyethylene was 8865 yuan/ton, with a month - on - month increase of 1215 yuan/ton; the theoretical profits of ethane cracking, CTO, and naphtha cracking to produce polyethylene were 1997 yuan/ton, 2556 yuan/ton, and - 1426 yuan/ton respectively, with month - on - month changes of +753 yuan/ton, +793 yuan/ton, and - 383 yuan/ton respectively. The average price of polypropylene was 8910 yuan/ton, with a month - on - month increase of 1640 yuan/ton; the theoretical profits of PDH, CTO, and naphtha cracking to produce polypropylene were - 781 yuan/ton, 2798 yuan/ton, and - 1028 yuan/ton respectively, with month - on - month changes of +306 yuan/ton, +1088 yuan/ton, and - 89 yuan/ton respectively [2][8] - **Coal - Chemical Industry Chain**: The average prices of synthetic ammonia, urea, DMF, and acetic acid were 2087 yuan/ton, 1839 yuan/ton, 5114 yuan/ton, and 2767 yuan/ton respectively, with month - on - month increases of 62 yuan/ton, 21 yuan/ton, 1005 yuan/ton, and 191 yuan/ton respectively; the corresponding gross profits were 88 yuan/ton, 154 yuan/ton, 428 yuan/ton, and 383 yuan/ton, with month - on - month increases of 63 yuan/ton, 5 yuan/ton, 169 yuan/ton, and 4 yuan/ton respectively [2][10] - **Animal Nutrition Industry Chain**: The average prices of VA, VE, solid methionine, and liquid methionine were 64.9 yuan/kg, 73.1 yuan/kg, 31.6 yuan/kg, and 19.0 yuan/kg respectively, with month - on - month increases of 4.4 yuan/kg, 9.7 yuan/kg, 10.7 yuan/kg, and 3.3 yuan/kg respectively [2][10] 3.2 Basic Chemical Weekly Report 3.2.1 Basic Chemical Index Trend - No detailed data provided in the given content 3.2.2 Polyurethane Plate - Analyzed the price trends and price - spread situations of pure MDI, polymer MDI, and TDI in China [15][18] 3.2.3 Oil - Gas - Olefin Plate - Studied the price trends of MB ethane, NYMEX natural gas, domestic steam coal, naphtha, crude oil, and propane, as well as the profitability of different processes such as ethane cracking to produce PE, PDH to produce PP, coal - to - PE, coal - to - PP, and naphtha - to - PE/PP [22][23][26][28][29][34][36][37] 3.2.4 Coal - Chemical Plate - Analyzed the price and gross - profit trends of coal - coking products (coking coal, coke), traditional coal - chemical products (synthetic ammonia, methanol, urea, DMF, acetic acid), and new materials (DMC, oxalic acid, octanol, adipic acid, caprolactam, PA6, PA66) [10][39][40][42][46][48][51][53] 3.2.5 Animal Nutrition Plate - Studied the price trends of VE, solid methionine, and liquid methionine [54][56]

Investment Rating - The industry investment rating is "Overweight," indicating an expected outperformance of the industry index relative to the benchmark by more than 5% over the next six months [67]. Core Insights - The report highlights significant price fluctuations in the chemical sector due to extreme weather conditions affecting natural gas prices in the U.S. [1]. - The average prices for various chemical products, including pure MDI, polymer MDI, and TDI, have shown a decline compared to the previous week, with respective price changes of -129, -114, and -213 CNY/ton [2]. - The report provides a detailed analysis of profit margins across different segments, indicating a decrease in margins for pure MDI and polymer MDI, while TDI margins remained relatively stable [2]. Summary by Sections 2.1 Basic Chemical Index Trends - The basic chemical index has shown a weekly increase of 7.3% as of January 23, 2026, with a year-to-date increase of 16.8% [8]. 2.2 Polyurethane Sector - The average prices for pure MDI, polymer MDI, and TDI are reported at 17,714, 13,900, and 13,975 CNY/ton respectively, with corresponding profit margins of 4,503, 1,689, and 2,459 CNY/ton [2][16]. 2.3 Oil, Coal, and Olefin Sector - Ethane and propane prices have increased by 210 and 21 CNY/ton respectively, while the average price for coal remains stable at 520 CNY/ton [2][22]. - The average price for polyethylene is reported at 7,100 CNY/ton, showing a slight decrease of 15 CNY/ton [2][28]. 2.4 Coal Chemical Sector - The average prices for synthetic ammonia, urea, DMF, and acetic acid are 2,211, 1,740, 3,894, and 2,600 CNY/ton respectively, with minor fluctuations in profit margins [2][41]. 2.5 Animal Nutrition Sector - The average prices for VA, VE, solid egg, and liquid egg are reported at 62.2, 54.5, 17.6, and 14.2 CNY/kg respectively, with minimal changes observed [2][54].

Investment Rating - The industry investment rating is "Overweight," indicating an expected outperformance of the industry index relative to the benchmark by more than 5% over the next six months [70]. Core Insights - The average prices for pure MDI, polymer MDI, and TDI are reported at 18,043, 14,171, and 14,478 CNY/ton respectively, with TDI showing a week-on-week increase of 59 CNY/ton [2]. - The average prices for ethane, propane, and coal are 1,165, 4,172, and 520 CNY/ton respectively, with ethane decreasing by 85 CNY/ton and propane increasing by 45 CNY/ton [2]. - The average prices for synthetic ammonia, urea, DMF, and acetic acid are 2,213, 1,724, 3,787, and 2,546 CNY/ton respectively, with synthetic ammonia decreasing by 34 CNY/ton and urea increasing by 12 CNY/ton [2]. - The average prices for animal nutrition products such as VA and VE are 62.5 and 54.9 CNY/kg respectively, with no significant changes [2]. Summary by Sections Polyurethane Sector - The average prices for pure MDI, polymer MDI, and TDI are 18,043, 14,171, and 14,478 CNY/ton respectively, with TDI showing a week-on-week increase of 59 CNY/ton [2][16][20]. Oil, Coal, and Olefins Sector - Ethane and propane average prices are 1,165 and 4,172 CNY/ton respectively, with ethane decreasing by 85 CNY/ton and propane increasing by 45 CNY/ton [2][24][31]. - The average price for polyethylene is 6,800 CNY/ton, reflecting a week-on-week increase of 30 CNY/ton [2]. Coal Chemical Sector - The average prices for synthetic ammonia, urea, DMF, and acetic acid are 2,213, 1,724, 3,787, and 2,546 CNY/ton respectively, with synthetic ammonia decreasing by 34 CNY/ton and urea increasing by 12 CNY/ton [2][40][48][49]. Animal Nutrition Sector - The average prices for VA, VE, solid egg amino acid, and liquid egg amino acid are 62.5, 54.9, 17.6, and 14.2 CNY/kg respectively, with no significant changes [2][56][62].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][6] Core Views - The company reported a strong performance in the first three quarters of 2025, with revenue of 16,642 million yuan, a year-on-year increase of 5.5%, and a net profit attributable to shareholders of 5,321 million yuan, up 33.4% year-on-year [6] - The company is expected to maintain its profit forecast, with projected net profits of 6,693 million yuan, 7,509 million yuan, and 8,080 million yuan for 2025, 2026, and 2027 respectively, corresponding to EPS of 2.18, 2.44, and 2.63 yuan per share [6] - The company is advancing its "Chemicals+" and "Biological+" strategic pathways, with ongoing project developments contributing to growth [6][7] Financial Performance Summary - For the first three quarters of 2025, the company achieved a gross margin of 45.55% and a net margin of 32.17%, both showing improvements compared to the previous year [7] - The third quarter of 2025 saw a revenue of 5,541 million yuan, a decrease of 6.7% year-on-year, and a net profit of 1,717 million yuan, down 3.8% year-on-year [6][7] - The company’s projected revenue for 2025 is 22,044 million yuan, with a year-on-year growth of 2.0% [9] Product and Project Development - The company is benefiting from the rising prices of methionine and is steadily advancing its liquid egg and nylon new material projects [7] - The company has successfully produced qualified products from its 180,000 tons/year liquid methionine project and is launching new products such as serine, tryptophan, and cysteine [7] - The company is also planning to develop a fragrance project on a large land reserve and will proceed with HA project and PPS expansion based on market conditions [7]